Indian share markets open firm

Wed, 10 Apr 09:30 am

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Asian stock markets have opened the day on a mixed note with stock markets in Singapore (down 0.4%) and China (down 0.3%) leading the losses in the region. However, markets in South Korea (0.8%) and Japan (up 0.6%) are trading firm. The Indian share markets indices have opened the day on a firm note. Stocks in the information technology and realty space are leading the pack of gainers. However, auto stocks are trading weak.

The Sensex today is up by around 52 points (0.3%), while the NSE-Nifty is up by around 11 points (0.2%). Mid and small cap stocks are also trading in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.1% and 0.3% respectively. The rupee is trading at Rs 54.6 to the US dollar.

Engineering stocks have opened the day on a mixed note with Crompton Greaves and KSB Pumps leading the losses. However, Ingersoll Rand and Opto Circuits are trading in the green. In a bid to de-risk its business model, state-run power equipment manufacturer Bharat Heavy Electricals Ltd (BHEL) is planning to diversify into new areas. The company's Rs 150 bn Tiruchirappalli (Tiruchy) Complex currently manufactures boilers for the power sector. It is now gearing to enter sectors such as defence, oil, gas and others. It has been decided by the complex to ear mark 20-25% of its capacity for the new business. As a start, the complex received some trial orders from Defence Research and Development Organisation (DRDO) in Avadi, near Chennai to supply 50 thermal pressure components for the battle tanks produced by DRDO for Defence. It is said that DRDO requires 250-300 such components every year. The estimated value of this is said to be about Rs 1 bn. Other than defence, the company is also exploring options to supply various components in the oil, gas and refineries space. It must be noted that in 2012-13, the complex spent around Rs 4,150 m on R&D and generated revenues of about Rs 32 bn.

Oil & gas stocks have opened the day on a mixed note with Gujarat Gas and Oil & Natural Gas Corporation (ONGC) leading the losses. However, Essar Oil and Indraprastha Gas are trading firm. As per a leading financial daily, Mukesh Ambani-led Reliance Industries Ltd (RIL) has discovered a new gas reservoir in the Krishna Godavari- D6 basin. Last year, the company had taken permission from the government to drill and explore further in the block, where its D1 and D3 fields are producing natural gas. It must be recalled that the block's output had started impressively. However, it had dropped rapidly after June 2010. It was said that the deep-sea reservoir turned out to be geologically more complex than expected. Though the details of the potential output are not known yet, the new discovery is said to be significant and might help revive the gas output from the region. Besides RIL, Cairn India has also announced the 26th oil discovery in its Rajasthan block. These ongoing new discoveries present fresh hope for India's energy sector.